[MichaelMorgan]

I'm working on building my credit. I've heard that keeping my credit utilization ratio low is key, but I'm not sure what the sweet spot is.

Should I aim to use less than 10% of my available credit, or is 30% okay? Does it vary depending on the credit scoring model?

Thanks for your advice and insights! I want to make sure I'm building a strong credit foundation.

[abfunders]

I'm working on building my credit. I've heard that keeping my credit utilization ratio low is key, but I'm not sure what the sweet spot is.

Should I aim to use less than 10% of my available credit, or is 30% okay? Does it vary depending on the credit scoring model?

Thanks for your advice and insights! I want to make sure I'm building a strong credit foundation.

If you're just "building", then "keeping it below" doesn't really build much. That affects the overall score at the time it's reporting. So if you're actually going for a new credit card, that's where the sweet spot is to make sure that your under 30% on each card. Obviously under 20% and under 10% is even better, and if you're borderline on your overall credit, then it's critical for higher approvals to be as low as possible. Again: Banks like lending money and extending credit to people who don't need it.